Wild Weather Helped Make Niche Commodities Big Winners in 2019
- Wet U.S. field conditions help spark gains for rice futures
- Prices for vegetable oils surge amid suppy concerns in Asia
Sacks of rice at a warehouse in Indonesia.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
The trade war, wild weather and angry farmers all generated major headlines in 2019 on corn and soybeans. But thinly traded niche commodities posted the most impressive gains for the year.
Rice, vegetable oils and lumber all posted price increases of at least 25%. The reason: Crazy climate conditions were magnified in smaller markets where there’s often less certainty over the supply cushion. Lower trading volumes can also make for exaggerated price moves.